S&P puts OM Group on positive watch

Standard & Poor's said it placed its BB- corporate credit rating and BB- senior secured debt ratings on OM Group Inc. on CreditWatch with positive implications.

The CreditWatch placement follows the announcement that OM Group has entered into a definitive agreement to sell its advanced materials division, which consists of its cobalt-related businesses. The transaction is expected to include the sale of the downstream portion of the business, including OM's cobalt refinery assets in Kokkola, Finland, and the transfer of OM's equity interests in its Democratic Republic of Congo-based joint venture, GTL, to its joint venture partners.

"The CreditWatch listing reflects our view that there is at least a one-in-two probability of a ratings upgrade if the transaction takes place as planned and a meaningful portion of debt is paid down," said S&P credit analyst Paul Kurias in a news release.

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